Olivier Blanchard

Olivier Blanchard · Roberto Perotti

This paper by Olivier Blanchard and Roberto Perotti (QJE 2002; circulated from 1998) characterizes the dynamic effects of U.S. government spending and net tax shocks on output using a structural VAR …

Olivier Blanchard · Jordi Galí

A New Keynesian model is extended with hiring costs that rise in labour market tightness and with real wage rigidity, so that unemployment exists and moves. Under the paper's utility specification the …

Olivier Blanchard · Jordi Galí

The standard New Keynesian model implies that stabilising inflation also stabilises the welfare-relevant output gap -- a property the authors name the "divine coincidence" and trace to the absence of …

Olivier Blanchard · Justin Wolfers

Blanchard and Wolfers argue that neither adverse macroeconomic shocks alone nor adverse labor market institutions alone can account for the two central facts about European unemployment: its rise from …

Olivier Blanchard · Lawrence F. Katz

Blanchard and Katz assess three decades of research on the determinants of the natural rate of unemployment and reach two main conclusions: that there has been considerable theoretical progress, …